Introduction
In the second phase of the MaCuDE project, the Finance task force aimed to identify the crucial skills required for employees in the finance sector in the digital age. The study sought to understand how digital technologies have transformed the way finance professionals work and the essential skills that business schools must cultivate in finance students to adequately prepare them for their careers. The focus was on the key skills and digital tools needed for current and future roles.
Methodology
The MaCuDE Finance Task Force, consisting of senior academics from business schools worldwide, employed a two-pronged approach to collect data. First, they developed a survey to gain an initial overview of the digital tools currently being used and the skills needed. The survey also aimed to understand how changes in the workplace, particularly in relation to the impact of the COVID-19 pandemic, have affected collaboration. The survey was sent to alumni, advisory board members, and close contacts of the task force, resulting in 75 respondents from three continents.
Second, the task force conducted a series of focus groups with alumni and industry contacts of varying seniority levels. These focus groups allowed for more in-depth conversations about digital skills, career pathways, and the impact of technology on the finance sector, both in the current climate and in the future. The focus groups consisted of participants mainly from large investment banks, finance startups, and consulting firms.
Digital Skills Impacting the Finance Sector
The survey and focus group discussions revealed three critical digital skill areas: programming, data analysis, and data visualization.
Programming emerged as the most sought-after skill, with 38% of survey respondents identifying it as the latest skill they had acquired. Excel, Python, and R are the most common programming languages used, and proficiency in at least one of them, is beneficial and often expected in finance roles. While especially in back-office positions, or in quantitative or software development positions, a full understanding and advanced skill in programming is sought after, a general understanding of programming is necessary for most roles. This understanding enables employees to comprehend the processes involved in analyzing data, recognize the possibilities and limitations, and conceptualize the scaling of processes when working with large datasets.
Data analysis remains a crucial skill, despite the increasing adoption of machine learning and automation. Finance professionals in all roles require the ability to analyze data to make decisions. Graduates are expected to understand data management processes and conceptualize the scalability of analytics processes. The introduction of machine learning and automation has changed the nature of these roles, but the ability to analyze data to inform decision-making remains integral to operations.
Data visualization was the third most important digital skill identified. Focus group participants emphasized the importance of being able to take complex data analysis and present it visually in a clear and concise manner. Professionals in finance must be able to communicate their analysis effectively to inform internal and external stakeholders, particularly senior colleagues or clients. Tableau was mentioned as the most popular software for data visualization. Recent graduates in the focus groups found that using Tableau for visualization was the most important digital skill they were using, despite not having much experience with it during their finance studies.
Impact on Roles and Career Pathways
Traditional finance roles, such as those in investment banking, sales, and trading, continue to exist. However, the consensus from focus groups is that while these areas of banking will persist in the future, the nature of individual roles has evolved and will continue to do so as technology and automation advance.
The use of electronic and algorithmic trading has significantly impacted operations and the number of available trading roles, with a decrease in traditional desk roles in recent years. In contrast, there has been a growing need for quantitative roles and software development as digital technology has transformed traditional processes.
Despite the increasing adoption of artificial intelligence and machine learning, the majority of focus group participants agreed that most decisions are still made by humans. The complexity of finance processes, the need to consider various risk factors, changing regulations, and the impact of ESG (Environmental, Social, and Governance) factors suggest that machines are not yet fully equipped to handle all decision-making responsibilities.
Focus group discussions also revealed that larger organizations, particularly banks, face challenges in automating all their processes due to the lack of understanding of the numerous processes they employ. As a result, the automation movement is progressing slowly.
The finance sector has seen an increase in roles related to regulation and ESG investing. As banks invest more in these areas and regulations evolve, there is a growing need to develop and adapt processes accordingly. Additionally, the rapid expansion of the decentralized finance (DeFi) sector and the emergence of cryptocurrencies and crypto assets are expected to drive further job growth in these domains.
Career paths in finance are becoming less linear, with an increase in lateral movements in recent years. Employees with strong digital skills may be promoted more quickly, with junior employees rising to leadership roles or newly developed positions based on their programming or data analytics capabilities. Soft skills and the ability to navigate organizational politics may take longer to develop but remain important for career advancement.
Focus group participants also noted a trend of employees moving from traditional banking roles to positions within financial technology and DeFi, seeking better work-life balance and flexibility. Immigration visa sponsorship can also influence career decisions, with large banks and top companies having an advantage in attracting talent due to their ability to sponsor visas more easily.
Changes to the Workplace
The COVID-19 pandemic has significantly impacted the way teams collaborate in the finance sector. During the lockdowns, organizations rapidly adopted digital tools like Zoom, Microsoft Teams, and Google Meet to facilitate virtual meetings and collaboration with internal and external stakeholders. Many organizations already had virtual private networks in place to ensure secure remote access to data and processes.
The survey results indicated that the majority of respondents (55%-67%) believed collaboration had increased due to technology, with more interaction occurring not only within teams but also across the organization. Remote working lifted barriers and made it easier to connect with colleagues, regardless of location.
However, focus group discussions revealed that remote working also presented challenges, particularly in communication. Some participants reported feeling left out of key discussions, strategic decisions, or team integration. Onboarding new staff remotely was also seen as problematic, leaving new employees feeling isolated. Teams had to be mindful of their communication strategies to ensure inclusivity.
While some organizations embraced the flexibility and benefits of remote working, others emphasized the importance of returning to the office to foster productivity and support employee mental health. Business travel had not yet returned to pre-pandemic levels at the time of the focus groups, but participants acknowledged the continued need for in-person global collaboration on projects. The reduction in travel may have a more significant impact on smaller organizations’ budgets.
Emerging Business Skills
In addition to digital skills, the survey and focus groups highlighted the importance of soft skills and leadership skills for career advancement in the finance sector. Teamwork and communication were the most frequently mentioned soft skills, followed by emotional intelligence and accountability
Focus group participants emphasized the importance of adaptability, as the rapid advancement of digital technologies requires employees to continuously upskill and learn new tools to improve their work efficiency. Problem-solving skills and the ability to understand the overall strategy and big picture were also seen as valuable when coupled with an understanding of digital skills like programming and data analysis.
Ethics and privacy concerns were discussed, with focus group participants considering these issues to be more relevant at a wider institutional level rather than in their day-to-day work. Ethical decisions are often guided by organizational policies and built into the infrastructure. However, when handling customer or client data and creating new processes, teams must consider the ethical use of data and ensure compliance with regulations. Cybersecurity is a significant concern, and employees receive regular training to protect against data leaks and security threats.
Skills Needed for Early Career Graduates
The survey and focus groups emphasized the importance of developing graduates as “all-rounders,” possessing a combination of specific digital skills and strong soft skills. For example, the ability to analyze data (digital skill) and present findings to multiple stakeholders (soft skill) is highly valued.
The key digital skills that the focus groups stressed were programming, data analytics and general digital skills. Soft skills development was also highlighted, with a focus on teamwork, communication, and presentation skills. Graduates from focus groups often commented on the limited opportunities to develop these skills within their curricula. While working in teams was common, presenting ideas or concepts to diverse audiences was less frequent. Developing listening skills was also mentioned, together with a growing interest in behavioral finance, and the importance of ethics in financial decision making.
Focus group participants stressed the importance of grounding the curriculum in theory while providing opportunities for applied learning. Students should be exposed to real-life case studies and situations to gain relevant experience before starting internships or full-time positions. Critical thinking skills, particularly in analyzing data and understanding the limitations and scalability of digital tools, were deemed crucial.
Conclusion
The MaCuDE Project Phase 2 Finance Report identifies programming, data analysis, and data visualization as the top digital skills currently in demand within the finance sector. The sector is moving towards automation through machine learning, but the complexity of finance processes means that human decision-making remains essential. The rise of ESG investing, decentralized finance, and crypto assets is creating new roles and reshaping the industry landscape.
Soft skills, particularly communication, presentation, and teamwork, continue to be highly valued. Adaptability, problem-solving, and strategic thinking are crucial for career progression in an ever-evolving digital landscape. Business schools must adapt their curricula to provide students with a strong foundation in both financial theory and practical application of emerging technologies. Incorporating real-world case studies, simulations, and opportunities for skill development in communication, teamwork, and critical thinking will help bridge the gap between academia and industry, producing well-rounded graduates prepared for the challenges and opportunities of the digital age in finance.